Andrew and Thompson had beginning capital balances of $24,000 and $19,000, respectively. The two partners fail to agree on a profit-and-loss-sharing ratio. For the first month (June 2016), the partnership has a net loss of $5,000. Requirements 1. How much of this loss goes to Andrew? How much goes to Thompson? 2. The partners withdrew no assets during June. What is each partner's capital balance at June 30? Prepare a T-account for each partner's capital account. Requirement 1. How much of this loss goes to Andrew? How much goes to Thompson? Andrew's $ 2,500 Thompson's $ 2,500 Requirement 2. The partners withdrew no assets during June. What is each partner's capital balance at June 30? Prepare a T-account for each partner's capital account. Determine each partner's capital balance using these T-accounts. Andrew, Capital Thompson, Capital
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Subject: acounting
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